6 Credit Card Tips to Get Ready for Holiday Spending

According to a survey done by TransUnion, more than half of Americans plan to use their credit cards during the holiday shopping season. This is also the time of year when swiping plastic puts you at the highest risk of identity theft. So how can you make the most of your spending with cash back and other rewards without compromising your security?

The first step is to get your credit card ready for the busy holiday season and set aside time to properly plan out your shopping list. As you pay for your holiday purchases with a credit card, make sure you’re following these six tips.

1. Review your Credit Report

Your credit score is likely the single most important indicator of your overall financial health. So it’s important to know where yours stands before the busy holiday shopping season gets underway. Do you have an account that’s behind on a payment? Is a balance transfer promotion about to expire? Review your credit report to make sure everything is up-to-date and on track.

With so many purchases being made, it’s also easy for mistakes to slip through the cracks. Take time right now to review your credit report for any errors, omissions, or inaccuracies. If you find an error, contact one of the three credit bureaus; Experian, TransUnion, or Equifax to remedy the situation.

2. Take stock of All your Credit Cards

Swiping your credit cards without having a plan is a recipe for disaster. Not only could you miss out on important cash back bonuses on one card, but you may pay additional fees if you go over your credit spending limit on another. Before heading out to the mall, take stock of all active credit cards.

Did you sign up for a new department store card last year? Do you keep some credit cards at work, or in the car? Now’s the time to gather them all up and review them. Make a list of the balances, credit lines, spending category bonuses, and other special perks that may come in handy in the near future.

Don’t forget to include other important details like the interest rate and if any future purchases may qualify for a 0% promotion rate for large purchases. Take care when making a list of your credit cards so you don’t overspend or miss out on important perks.

3. Request a Credit Line Increase

To help with the increased spending that’s bound to happen during the holidays, call up your credit card company and request a credit line increase. Your goal is to keep your debt utilization ratio at a minimum, since this is a large determining factor that makes up your credit score. Your debt utilization ratio is calculated by taking the total amount of your spending limit divided by the total amount you’ve charged to that account.

Since you know you’re going to increase your spending during this busy season, it’s a good idea to request a spending limit increase. That way your credit report won’t get dinged by showing too much debt to the available credit ratio. Make sure you use your new credit limit wisely. Try not to overspend or build debt you can’t afford.

4. Sign up for Credit and Account Alerts

It’s no secret that identity thieves love the holiday season. There’s increased credit card spending, which means more room for errors and overlooked transactions. A smart way to keep up with your credit card transactions is to sign up for account alerts via text message or email. If there are any signs of foul play, such as double-posted transactions, or out-of-the-ordinary purchases, you’ll receive a real-time alert form your credit card company.

Some of your credit cards may even offer credit monitoring services for free, so it’s a good idea to inquire about this and make sure it’s activated on your account. Even if the monitoring service costs a small monthly fee, it may be worth paying for through the holiday season when your accounts need it most.

5. Verify Cash Back Bonuses

Nearly all credit cards offer similar, but still different, cash back bonuses and ways to earn points or travel miles. This system is beneficial but can be confusing when you’re trying to get the most out of your holiday shopping purchases. The good news is that you can easily categorize your credit cards based on what type of cards they are, like if they’re part of the Chase family, or belong to the Discover brand of products.

For example, Discover’s rotating cash back bonuses from October through December 2018 will include Amazon.com and Wholesale Clubs (earning 5% on up to $1,500 in purchases when you activate). In 2017, Chase had similar rotating bonus categories for their Freedom card, with the inclusion of drug stores. Use this information when making your shopping list so you won’t miss out on additional cash back bonuses.

As you’re making a list of your balances, credit limits and interest rates, go ahead and make a note about the various cards and their cashback bonus categories. The prep work may take a little time to properly understand everything your credit card offers, but when you’re able to fully maximize your spending with cash and other perks, the benefits will be worth it.

6. Learn More about Cardholder Perks

It’s easy to focus on the cash back bonuses your credit card provides, but what about other cardholder benefits? One of the main selling points to using a credit card throughout the holiday shopping season is that most of your purchases may be covered with purchase protection benefits. These include perks such as an extended warranty, a refund protection policy, and other price matching perks.

Make sure you’re familiar with all the cardholder perks that come with the credit cards you’re using. To find out the exact benefits you have access to, simply log into your online credit card account and click the “benefits” link to learn more.

Bottom Line

Before heading out to the mall, or sitting down to do your online shopping, make sure you fully understand the benefits your credit card offers. Don’t be in a rush to swipe your card too soon, as you could miss out on important cash back perks.

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ABOUT THE AUTHOR

Carrie Smith is a financial writer and founder of Careful Cents, a blog and community aimed at helping freelancers overcome financial mountains. Her mission is to focus on building client-based businesses through meaningful relationships. She's been featured and published in Glamour Magazine, The Huffington Post, Inc and many other media outlets. Learn more about her and connect with her in real time on Twitter @carefulcents.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

Credit Cards Explained may earn affiliate commissions from our partners on this page. These commissions do not affect how we select, rate, or review products. To find out more, read our complete terms of use.